16
•
Fund Family Shareholder Association
DAN’S DO-IT-NOW ACTION RECOMMENDATIONS
4
Einsteinmaynot haveactually said compound interest isman’sgreatest invention, but that
doesn’tmake it any lesspowerful. Helpa teenget anearly start,whileavoiding taxeswitha
Roth IRA. (Seepage1)
4
Vanguard isaddinganothermanager inPzena to
SelectedValue
. I’m less thanhappywith the
addition, but don’t jump ship just yet. (Seepage1)
4
DonKilbridemayhaveacautiousoutlook, but he issticking to thegameplanat
DividendGrowth
.
Youshould, too. (Seepage12)
Never Use a
PIN
Again
AdviserOnline.com
ismore streamlined
and easier to use than ever. But there’s one
thing that canmake it even better: Setting up
your unique username and password. Instead
of looking for a new PIN on page 1 of the
newsletter eachmonth, you can simply use
your own personalized login.
If you don’t have your own unique login, you
should set it up now, as
we’ll bediscontin-
uing thePIN in thecomingmonths
. Here
are a few tips to help you set up ormodify a
unique login:
Createausernameandpassword
at
.
You’ll need your account number, or if you
just joined, your order number. Both can be
found on correspondence you receive such as
theHotline emails.
Modify your usernameandpassword
at
.
php. All you need is your current personal
login information.
Forgot your usernameor password?
No
problem. Reset it atwww.adviseronline.com/
password/forgot.php. Again, you should have
your account number or order number handy.
Set up ormodify your login at AdviserOnline.
com today. If you have any questions or prob-
lems, call us at 800-211-7641 or email us at
.
Daniel P.Wiener
isAmerica’s leading expert on
theVanguard family of funds. He is founder of
theFundFamily ShareholderAssociationand
chairmanand chief executive officer of Adviser
Investments, LLC, aNewton,Massachusetts,
investment advisory firm (800-492-6868). As
editor of
The IndependentAdviser forVanguard Investors
, he is
a five-time recipient of theNewsletterPublishersFoundation’s
Editorial ExcellenceAward. He also edits the annual
IndependentGuide to theVanguardFunds.
Mr.Wiener is often
quoted in the nation’s leading financial publications.
JeffreyD. DeMaso,
Editor/Director of
Research, works directlywithDanWiener
researching andwriting themultiple-award
winning
IndependentAdviser forVanguard
Investors
newsletter. He also leads the analyst
team for Adviser Investments, LLC, helping to
oversee $2.7 billion in assets. Jeff graduated
magna cum laude
fromTuftsUniversitywith aB.A. in economics in 2006, holds
theCharteredFinancial Analyst designation and is amember
of theCFA Institute and the Boston SecurityAnalysts Society.
tion inDecember 2000, June 2001 and
December 2004. Oneof the reasons for
favoring Selected Value was the abil-
ity to invest directly withmanager Jim
Barrow, rather than the agglomeration
ofmanagersVanguardwasadding to the
once-strongWindsor II. (Vanguard did
fire Armstrong Shaw early in March,
though.)The choicewas a goodone, as
returns from eachof our SelectedValue
purchases substantially outperformed
both Total Stock Market and Windsor
II through the end ofMarch.
Given that Pzena won’t be mak-
ing too much trouble with the fund in
the early going with the firm’s small
initial stake, I’m not as concerned
here as I would be if Vanguard had
handed over a large chunk of Selected
Value’s assets. And this isn’t the last
time you’ll see changes at Selected
Value, as JimBarrow, 73, begins step-
ping further away from this fund (as
he has at Windsor II) and handing
the reins over to co-manager Mark
Giambrone. I’m a fan of both Barrow
and Giambrone, but I’m less than
happy about Vanguard’s continued
meddlingwith the last few great active
funds in its family. Maybe if some of
the directors owned shares in Selected
Value, they’d see it myway.
Finally, a mea culpa is in order. In
last month’s issue, a few errors made
it through the editing process into the
print copy. First, thank you to a few
hawk-eyed FFSA members for catch-
ing our mistakes. Second, let me try to
clear up any confusion that may have
been caused.
We found a couple of discrepancies
between the ratings in the text of the
Funds Focus
article and those listed
in the
Performance Review
tables. In
short, I rate
Tax-Managed Growth
& Income
a Sell and
High Dividend
Yield Index
a Hold. Also in the
Performance Review
, I labeled
High-
Yield Corporate
as closed, when in
fact it is open to all investors. Finally,
in the table of the
January Barometer
article, I dropped the negative sign
from January 1978’s -6.2% return. The
negativewas lost in the formattingpro-
cess, but the overall numbers I quoted
to you incorporated the correct returns.
Thankyou again to those subscribers
who reported our mistakes—you keep
me honest andmake the newsletter bet-
ter for all of us. A corrected version of
March’s issue isavailable fordownload-
ing at adviseronline.com.
n
RATIONAL
FROMPAGE3
>
